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CMS advises on one of Poland’s largest corporate PPAs

16 September 2022

International law firm CMS has advised leading construction materials manufacturer Saint-Gobain Group in Poland on the conclusion of a 15-year agreement to purchase renewable energy from onshore wind farms in Poland belonging to Tion Renewables Yield AG. The contract was concluded as a corporate Virtual Power Purchase Agreement (VPPA), an agreement for the virtual purchase of electricity generated from renewable sources directly from the producer. This is one of the largest PPAs of its kind signed in Poland.

The CMS team supported Saint-Gobain in preparing and negotiating the agreement between Saint-Gobain and Tion Renewables Yield AG group (was Pacifico Renewables Yield AG). The total installed capacity of the wind farms is approx. 52 MW, with a projected production of approx. 190 GWh a year, which is the equivalent of the electricity consumption of around 100,000 households in Poland. The contract was concluded under a pay-as-produced arrangement and provides for the financial settlement of 100% of the electricity generated at the wind farms and the provision of guarantees of origin for the entire volume. 

The agreement will contribute to achieving Saint-Gobain’s objective to reach net-zero carbon emissions by 2050, and fits in with the Group’s vision of being a world leader in light and sustainable construction. As of 2025, the 15-year corporate PPA will cover nearly 45% of Saint-Gobain’s demand for electric power in Poland. It will allow Saint-Gobain to reduce its CO2 emissions by 135,000 tonnes per year, the equivalent of nearly 20% of its Scope 1 and 2 emissions in Poland, as well as 4% of its Scope 1 and 2 CO2 emissions in Europe.

The CMS team was led by Piotr Prawda with support from Kacper Stanosz (Energy and Projects). 

This deal is the latest in a series of high profile transactions CMS has advised on in Poland. The team has advised on the negotiation and conclusion of one of the first corporate PPAs in Poland, and on a number of offshore projects carried out in the Baltic Sea, including the construction of offshore gas pipelines, drilling platforms and offshore wind farms.